Bybit to Exit Japan in 2026 Amid Regulatory Compliance Issues
Bybit, the world's second-largest cryptocurrency exchange by trading volume, announced it will exit Japan in 2026 and discontinue services for Japanese residents. To align with local regulations, Bybit will gradually implement account restrictions, requiring affected users to complete Identity Verification Level 2 by January 22, 2026, or else be treated as Japanese residents.
Bybit had previously suspended new user registrations from Japan in October 2025 while reviewing regulatory requirements and assessing compliance with Japanese standards. The Financial Services Agency (FSA) of Japan issued formal warnings to Bybit in November 2024 and March 2023 for conducting crypto business with Japanese counterparties without proper authorization.
In February 2025, Apple blocked Japanese users from downloading Bybit's app, although Google Play downloads reportedly remained unaffected at that time. The FSA's crackdown on unregulated crypto activities is part of broader reforms under consideration, including reclassifying digital assets as financial products, implementing reserve requirements, and lowering crypto taxes to 20%. Amendments to the Financial Instruments and Exchange Act are expected to be enforced in 2026.
While exiting Japan, Bybit has expanded in Europe, launching the EU-dedicated platform Bybit.eu in July 2025 after obtaining a MiCA license from Austria's Financial Market Authority (FMA). The platform now operates in 29 countries within the European Economic Area (EEA), with headquarters in Vienna and planned offices in France, Germany, Spain, and Italy.
In addition to Japan, Bybit faces regulatory challenges across Asia, including a Monetary Authority of Singapore (MAS) order to cease overseas activities for unlicensed providers. The company has reportedly considered relocating staff to Dubai or Hong Kong and engaged in talks to acquire Korea’s Korbit exchange to ease regulatory pathways.
